Eli Lilly to acquire psychedelic drug developer for $2.8B

Eli Lilly and Co. has agreed to acquire AtaiBeckley, a clinical-stage biopharmaceutical company developing innovative therapeutics for mental health conditions, to advance the drugmaker’s push into psychedelic-based research.

The acquisition comes as the federal government has pursued actions to advance psychedelic-based treatments for mental illness. On April 18, President Donald Trump signed an executive order directing federal agencies to accelerate research, regulatory review and access to psychedelic drugs for serious mental illness. 

Recently, HHS and the Department of Veterans Affairs entered into a memorandum of understanding July 13 to bolster collaboration on the research, clinical development and deployment of potential future psychedelic drug products for veterans with serious mental health conditions.

Here are four things to know:

1. The deal gives Lilly access to AtaiBeckley’s asset, BPL-003, an intranasal, synthetic form of 5-MeO-DMT in Phase 3 development for treatment-resistant depression. The drug has received breakthrough therapy designation from the Food and Drug Administration.

2. Srinivas Rao, co-founder and CEO of AtaiBeckley, said Lilly’s resources could accelerate the pipeline’s path to patients. Christian Angermayer, AtaiBeckley’s founder, largest shareholder and board chairman, called the sale the best path forward for patients and shareholders.

3. The transaction, unanimously approved by both boards, is expected to close in the third quarter of 2026, pending AtaiBeckley stockholder approval and regulatory clearances.

4. The upfront cash consideration represents an aggregate equity value of approximately $2.8 billion. The Contingent Value Right represents an additional potential aggregate equity value of approximately $1 billion. 

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